Hi,
AS the camera works in another Mac User Account and even another Application on the same Mac user it is more likely a corrupt .plist
It will somewhat depend on this Mac User's use of the Internet at the start up of iChat.
At iChat start up iChat "reads" what Internet speed it can get.
This depends on the current activity of the computer and anyone else sharing the same Internet connection (Don't forget WiFi Phones).
It writes this speed to the com.apple.ichat.plist and uses that speed until ichat is Quit.
Restarting iChat is supposed to change it.
Having said that it dos not always happen.
Restarting the computer may solve it.
Try a PRAM reset.
Shut down the computer.
Restart it holding down Apple/CMD (or ⌘)+ALT
PR Keys until you have heard three Start Up Bongs.
Lastly if the other have not worked delete the Users com.apple.ichat.plist.
This will be found in that Users Home Folder/Library/Preferences (Place in Trash and restart iChat if Open - this will rewrite the .plist form defaults and a new system check).
I suggest this last as it is somewhat destructive.
It resets anything set in the iChat Preferences
Font Choice
Font Colour
IM Background/Balloon colour.
Any Alerts sounds that have been changed
Any Alert > Apple Scripts that have been set.
Saved Transcripts options.
Menu bar icon in the General Section.
It also loses any Saved Status Messages as well.
Hope this helps.
11:08 PM Sunday; August 1, 2010
Please, if posting Logs, do not post any Log info after the line "Binary Images for iChat"